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VANCOUVER, British Columbia, May 01, 2025 (GLOBE NEWSWIRE) -- LEEF Brands Inc. (CSE: LEEF) (OTCQB: LEEEF) (the “Company” or “LEEF Brands”), one of California’s largest and most sophisticated cannabis companies, today announced its financial results for the first quarter ended March 31, 2025, and full-year results for the year ended December 31, 2024.

First Quarter 2025 Financial Highlights vs. First Quarter 2024:

• Revenue of $9.4 million, up 19% from $7.9 million, reflecting strengthening market demand and improved sales execution.

• Adjusted EBITDA of -$0.8 million, down from $1.2 million, due to costs associated with ramping new cultivation, positioning the Company for future margin expansion.

• Net income of $2.0 million, compared to a loss of $1.8 million in the prior-year period.

Full Year 2024 Financial Highlights vs. Full Year 2023:

• Revenue of $28.5 million, down 7% from $30.6 million, as the Company repositioned its product and customer mix to support long-term profitability.

• Adjusted EBITDA of -$2.4 million, compared to $1.2 million, due to transitional investments in infrastructure and operational scalability initiatives, including equipment upgrades in California and New York.

• Net loss of $24.6 million, a 29% improvement from $34.7 million, driven by cost containment and operational restructuring. The loss includes significant non-cash items, such as $2.7 million in goodwill and intangible write-downs, $2.9 million from debt extinguishment, and a $6.1 million change in derivative fair value.

“While we’re not yet where we ultimately aim to be, we’ve laid a strong foundation for future growth,” said Kevin Wilson, CFO of LEEF Brands. “Over the past several quarters, we’ve expanded our sales pipeline and advanced our extraction technology. With Salisbury Canyon Ranch set to begin contributing to our supply chain later this year, we expect these efforts to drive meaningful financial improvements.”

Operational Highlights:

• Appointed Jesse Redmond as Head of Investor Relations and Business Development. Jesse is a former hedge fund manager, dispensary operator, and cannabis analyst who is regarded as a thought leader in the industry. He has a proven track record of building strong relationships with investors and identifying high-value growth opportunities.

• Expanded production capacity to meet increased demand. LEEF increased extraction and manufacturing capacity to support rising order volume and growing customer demand. The Company increased ethanol extraction by 66%, solventless by 50%, and hydrocarbon by 38%.

• Entered the New York market with LOI to acquire a Tier 1 processing license. In February, LEEF signed a binding letter of intent to acquire a Tier 1 adult-use processing license in New York. This is expected to be a $1.5B market in 2025, and concentrates are used in 52% of products. New York should drive higher revenue and improved margins in the second half of 2025.

• Planted Salisbury Canyon Ranch, one of the largest cannabis farms in the world. In April, the Company began planting 65 acres at Salisbury Canyon Ranch, a 1,900-acre trophy ranch in Santa Barbara County. This milestone marks the first step in building one of the world’s largest cannabis farms. Salisbury Canyon Ranch is expected to drive higher margins, improve product quality, and give LEEF greater control of the supply chain.

• Salisbury Canyon Ranch was independently valued at $40.8 million, approximately twice the Company’s current market cap. LEEF acquired Salisbury Canyon Ranch in 2023 for $6.4 million and has invested approximately $6.0 million in infrastructure improvements and $700,000 in California DCC cultivation licenses. The $40 million valuation underscores this project’s strong ROI to shareholders.

• LEEF acquired 3.9719766 Bitcoin at an average cost basis of $88,372 in 2024 and during the first quarter of 2025. The Company anticipates increasing its Bitcoin position through the rest of the year.